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Quantitative Finance · Glossary

What is Oracle-priced exchange?

Definition 21.7 Markets III: Commodities, Energy and Crypto · Chapter 21 — On-Chain Order Books and Perpetual DEXs

An oracle-priced exchange is a perpetual or spot DEX that has no order book: traders open and close positions against a liquidity pool at a price supplied by an oracle, with fees and price-impact charges set by the protocol, and the pool’s depositors take the other side of every trade.

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